5 Stocks to Buy According to William Von Mueffling’s Cantillon Capital Management

4. Analog Devices, Inc. (NASDAQ:ADI)

Cantillon Capital Management’s Stake Value: $538,597,000
Percentage of Cantillon Capital Management’s Portfolio: 3.84%
Number of Hedge Fund Holders: 67

Analog Devices, Inc. (NASDAQ:ADI) creates, produces, tests, and sells integrated circuits (ICs), software, and subsystems that use mixed-signal, analog, and digital signal processing techniques. Cantillon Capital Management elevated its position in Analog Devices, Inc. (NASDAQ:ADI) by 3% in Q1 2022, holding more than 3.26 million shares equalling $538.60 million. The stock accounted for 3.84% of the fund’s total 13F portfolio.

Given the continuing uncertainty surrounding the semiconductor cycle, Ross Seymore, an analyst at Deutsche Bank, decreased his price objective for Analog Devices, Inc. (NASDAQ:ADI) from $185 to $165 on July 20 and maintained a Hold rating.

67 hedge funds from the Q1 database of Insider Monkey reported bullish bets on Analog Devices, Inc. (NASDAQ:ADI), with combined stakes totalling $4.81 billion. With 3.73 million shares valued at $615.90 million, Egerton Capital Limited is the top shareholder of Analog Devices, Inc. (NASDAQ:ADI).

In its Q3 2021 investor letter, Madison Funds mentioned Analog Devices, Inc. (NASDAQ:ADI). Here is what the fund said:

“At its 2017 investor day, Analog Device’s VP of Automotive, Mark Gill, described how the company’s content on well-equipped electric vehicles was $600 per car compared to $250 per car for the traditional 2017 internal combustion engine car. Since then, Analog has highlighted the success of its EV battery management systems (BMS) product nearly every quarter. The BMS product is hardware and software that manages the power into and out of the battery systems. It’s the brains of the operation. Analog says it’s on its fifth generation BMS product, that it has the no. 1 market share in high voltage products, and that it is on 5 of the top 10 selling EVs. While we think that the BMS product is just 1 to 1.5% of Analog’s product mix, we think that it could add nearly a point of revenue growth per year to the company’s top-line given the expected ramp in EV production. This is a material amount of growth atop an already nicely growing company revenue line.”